A SECRET internal report has revealed 42 potential breaches of finance rules at a Victorian council relating to contracts.

Moira Shire’s internal audit of its management of contracts, seen by the Herald Sun, raises concerns over payments above $150,000 that were not subject to a tender process.

“We identified 42 potential breaches out of 65 aggregated payments tested for the period 1 July, 2011 to 31 December, 2013,” says the 141-page report to council on May 1.

The Herald Sun understands complaints about the northeastern Victorian council have been made to the Independent Broad-based Anti-corruption Commission, the state Ombudsman and the Local Government Minister.

IBAC and the Ombudsman referred them to the minister.

The Herald Sun has revealed IBAC referred allegations of corruption at the City of Latrobe to the Ombudsman.

The Moira Council report flags some payments as potential breaches of the Local Government Act, which requires a tender for contracts, goods or services above $150,000.

It found some totals paid to suppliers were twice what they’d been contracted to deliver.

It lists nine suppliers who received more than the contracted sums.

Andrew Goldman Excavations was paid $1.8 million more; Lawrence Bros $1.5 million above its agreement; and Downer EDI $700,000 more than contract.

Cleanaway was paid $221,028 above its contracted services, an amount more than double its $104,877 contract.

The Herald Sun is not suggesting those businesses have done anything wrong. Shire chief executive Mark Henderson said he couldn’t discuss the audit as “it contains commercially sensitive information”.

Council voted in April to approve a 5.5 per cent rates rise, followed by 6 per cent rises for the next three years.

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